Chinese logistics firm Best Logistics Technology Co., backed by Alibaba Group Holding Ltd. and Hon Hai Precision Industry Co., is planning to raise US$1 billion via an initial public offering in the U.S. later this year.
The Hangzhou-based logistics company is currently selecting an investment bank to help it go public, most likely in September or October, according to media reports citing insiders.
In February, China's largest express delivery firm S.F. Express completed a back-door listing on the Shenzhen Stock Exchange, after four major Chinese courier delivery companies all completed public listings.
Last September, CITIC Private Equity led a US$760 million pre-IPO funding round in Best Logistics before its planned listing. Best Logistics was reportedly worth over US$3 billion after that round. It's unclear what valuation it will be able to obtain for its IPO.
Founded in 2007 by Google China's former co-president Johnny Chou, Best Logistics counts China Renaissance Capital Investment, Walden International, CDH Investment, Goldman Sachs, International Financial Corp, IDG Capital as its early backers as well.
Alibaba holds a 22% stake in Best Logistics, while Cainiao Network, a logistics information platform founded by Alibaba Group Holdings Ltd. and China's largest courier service firms, has a 5% stake in the company as it invested in Best Logistics alongside Alibaba.
At the end of 2016, Best Logistics operated 620 operation centers, with four million square meters of warehouse and operation center surface areas. It has 50,000 staff and nearly 10,000 franchise partners to provide logistics services across the country.